EUR/USD seen rangebound around 1.13 near term – Danske Bank

Chief Analyst at Danske Bank Christin Tuxen now sees the pair attempting a sideline theme around 1.1300 in the near to medium term.

Key Quotes

“Overall, we expect to see much more one-sided trading in EUR/USD going forward. Near term, while Fed eagerness to tighten could still support USD a bit near term, it may imply a tightening pause at a later stage; thus, we see only limited upside to USD rates in H2. Speculators are close to square on EUR and remain net long the greenback, which suggests risks remain for USD weakness from a positioning point of view”.

“We no longer expect any material dip in the cross over the summer, and we have upped our 1M and 3M forecasts to stand at 1.13 (previously 1.11 and 1.09, respectively) as we see the cross in a range around this level in coming months. For the longer term, our call remains unchanged, and we still expect the cross to edge towards 1.18 in 12M. We have upped our 6M forecast to 1.15 (previously 1.12) to reflect that we believe the higher ranges are here to stay”.